CHAT vs. FTEC: Is Concentrated AI Exposure or Broad Tech Diversification the Better Play Right Now?
Here's how these two tech funds compare in terms of risk, returns, and diversification.
Overview
The Roundhill Generative AI & Technology ETF (NYSEMKT:CHAT) and the Fidelity MSCI Information Technology Index ETF (NYSEMKT:FTEC) both target the fast-moving technology space, but they do so with different philosophies.
While FTEC tracks a market-cap-weighted index of the entire U.S. technology sector, CHAT uses a proprietary strategy to pinpoint companies specifically benefiting from the rise of generative AI. Here's how the two funds stack up.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
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Originally published at www.fool.com.